2024-02-01-莱坊-M25_Offices_Q4_2023_7页_2mb

报告摘要

Strong occupier demand concentrated in high-quality spaces, driving +64% quarter-on-quarter net take-up of 1.4 million sq ft in Q4 2023, the highest since 2018.
New and Grade A space accounted for 84% of total take-up, while Grade B absorption remains low at 16%.
South East vacancy rate increased marginally to 7.9%.
Prime office rents rose 3.8% year-on-year to £47.00 PSF, exceeding the 10-year average.
Investment activity decreased by 55% YoY, but Q4 saw £1.3 billion of stock traded, with an average deal size of 10,400 sq ft.
Prime net initial yields increased 100bps to 7.00%, the highest since 1992.

Core occupier demand remains strong, with requirements growing faster than available Grade A space
Office types: Financial & Business Services (45%), Retail/Distribution (15%), Life Sciences (12%)
London-headquartered tenants drive 56% of GDP take-up

Investment volumes remain subdued, with total stock transacted down 55% YoY to £1.3 billion
Deal count of 74 transactions represents the lowest on record for a quarter
Average deal size of £18.3m is the largest since 2014
Highest concentration in 'winning' occupier markets (M25, L&GC, South East)

Prime rents increased 3.8% YoY to £47.00 PSF
Prime yields rose 100bps to 7.00% (highest since 1992)
Interest rate forecasts indicate UK monetary policy normalization could ease market conditions in 2024